Lakeshore Drive Recreation Club, Inc. v. United States Fidelity & Guaranty Co.

I respectfully dissent from the majority’s holding in this case.

Suit was originally filed against both USF&G, the liability insuror, and Travelers Indemnity Company, the surety on the performance bond. Together these two companies provided the insurance required by the State for the project. We are not here concerned with the obligations of Travelers, but only with those of USF&G under its liability policy.

The majority quotes the contract entered into by the State of Alabama and Southeast whereby Southeast agreed to obtain insurance coverage for property damage “arising out of acts or…